Asset Finance Solutions

The 2008 Budget introduced a major overhaul of capital allowances. Please contact us to discuss the tax relief to which you are entitled to on any capital expenditure. This applies to plant and machinery in particular.

For limited companies subject to corporation tax expenditure is on or after 1 April 2008, for unincorporated businesses expenditure is on or after 6 April 2008.

Assets will be dealt with either in a main rate pool, a special rate pool or a single asset pool.

Plant & Machinery
Expenditure up to £50,000 - 100% allowances
Expenditure over £50,000 - 20% allowances

Special rate pool (long life assets and integral features)
Expenditure up to £50,000 - 100% allowances
Expenditure over £50,000 - 10% allowances

Energy efficient & environmentally beneficial technologies (ECA) - 100% allowances

Capital allowances allow the cost of capital assets to be written off against taxable profits. They replace the charge for depreciation in the business accounts, which is not allowable for tax relief.
Where a business has a chargeable period of less than a year the maximum allowance is reduced or increased pro-rata.